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Note 12 - Investments in Equity Method Affiliates

12 Months Ended

Dec. 31, 2021

Notes to Financial Statements

Equity Method Investments and Joint Ventures Disclosure [Text Block]

12. INVESTMENTS IN EQUITY METHOD AFFILIATES

Equity method accounting requires that the Company record its investments in equity method affiliates on the consolidated balance sheets and recognize its share of the equity method affiliates’ net income as earnings each reporting period. The Company elected to use the cumulative earnings approach for the distributions it receives from its equity method investments. Under the cumulative earnings approach, any distributions received up to the amount of cumulative earnings are treated as return on investment and classified in operating activities within the cash flows. Any excess distributions would be considered as return of investments and classified in investing activities.

The Company has certain equity method affiliates for which it has elected the fair value option. Those investees are excluded from the table below. Those investees are included as a component of other investments, at fair value in the consolidated balance sheets. All gains and losses (unrealized and realized) from securities classified as other investments, at fair value in the consolidated balance sheets are recorded as a component of principal transactions and other income in the consolidated statement of operations

The following table summarizes the activities and earnings of the Company’s investments that are accounted for under the equity method. See note 4 and note 31.

INVESTMENTS IN EQUITY METHOD AFFILIATES

(Dollars in Thousands)

		Insurance SPACs				Dutch Real Estate Entities				Other SPAC Sponsor Entities				Total
December 31, 2018		$	-			$	-			$	-			$	-
Investments / advances			3,775				577				-				4,352
Distributions / repayments			-				-				-				-
Earnings / (loss) realized			(553	)			-				-				(553	)
December 31, 2019			3,222				577				-				3,799
Investments / advances			10,325				2,097				300				12,722
Distributions / repayments			(84	)			-				-				(84	)
Earnings / (loss) realized			(3,656	)			638				63				(2,955	)
December 31, 2020			9,807				3,312				363				13,482
Investments / advances			-				2,425				5,967				8,392
Distributions / repayments			(3,958	)			-				(249	)			(4,207	)
Reclasses to (from)			-				-				(5,439	)			(5,439	)
Earnings / (loss) realized			(1,306	)			(137	)			37,453				36,010
December 31, 2021		$	4,543			$	5,600			$	38,095			$	48,238

The Insurance SPACs represent the Company's consolidated subsidiaries equity method investments in various insurance SPACs.

Dutch Real Estate Entities includes: (i) Amersfoot Office Investment I Cooperatief U. A. (“AOI”) is a company based in the Netherlands that invests in real estate and (ii) CK Capital Partners B.V. (“CK Capital”) is a company based in the Netherlands that manages investments in real estate.

Other SPAC Sponsor Entities includes both indirect and direct investments in SPAC Sponsor Entities. Several of these Sponsor Entities are invested in SPACs that have completed their business combinations. Those Sponsor Entities hold restricted and unrestricted equity interests in the public post-merger entities. The following table shows the equity method balance included in other SPAC Sponsor Entities above broken out by the ultimate investee.

Entity	Ticker		Equity Method Carrying Value
Parella Weinberg Partners	PWP		$	1,128
Archer Aviation Inc.	ARCHR			728
Wejo Group Ltd.	WEJO			1,963
Heliogen, Inc.	HLGN			28,448
Various other Sponsor Entities				5,828
Total			$	38,095

Over time, the Company expects these Sponsor Entities to either (a) liquidate their investments in these companies and distribute to the Company its allocable share of the cash proceeds or (b) to distribute the Company's allocable share of these equity investments in-kind to the Company. In either case, the final cash realized from these investments will be impacted by the performance of the public companies listed above until those investments are liquidated.

The following tables show certain summary financial data of all the Company's equity method investees. These amounts include all equity method investees whether accounted for under the equity method or at fair value. All information is presented on a combined basis.

		December 31, 2021				December 31, 2020
Total Assets		$	1,158,081			$	677,755

Liabilities		$	193,184			$	66,018
Total Equity			964,897				611,737
Total Liabilities & Equity		$	1,158,081			$	677,755

		Year Ended December 31,
		2021				2020				2019

Net income/(loss)			277,134				21,416				6,009
Net income/(loss) attributable to the investee			277,134				21,416				6,005